The "Degen" of the crypto world: adventurer or innovator?

The term “Degen” originates from “degenerate,” initially used to describe reckless gamblers at casinos or card tables. In the context of cryptocurrency, it has taken on a new meaning, often playfully referring to those who are passionate about chasing high-risk, high-reward crypto projects, frequently making bold investments based on community hype, intuition, or FOMO (Fear of Missing Out) emotions.

According to Statista, there are currently over 617 million verified crypto wallets worldwide. In this vast ecosystem, “Degen” has become an undeniable cultural phenomenon.

Origin and Evolution

The journey of the word Degen begins in the traditional gambling world. It was once a term for players at poker tables who bet recklessly based on impulse, disregarding risks. As gambling culture intertwined with sports and competitive events, it was even used to describe athletes whose careers were harmed by improper betting.

In the crypto world, “Degen” has undergone a rebirth. It no longer carries purely negative connotations but more often represents an investment mindset that embraces market volatility and uncertainty. Crypto Degens believe in high risk and high reward, with their behavior patterns sharply different from traditional investors who rely on fundamental analysis. This behavior has fostered a unique community culture where adventurous spirit is often praised, and early entry is regarded as a badge of honor.

Core Traits of Crypto Degen

This group shares distinct characteristics. High risk tolerance is the primary trait—they are willing to risk their entire principal for the potential of outsized returns. They are curious and eager to explore new projects, spending significant time searching for and discussing those not yet mainstream. Driven by FOMO, every new project might be seen as a “rocket to the moon,” fearing to miss the next explosive rally.

Despite their risky behavior, many Degens feel a strong sense of belonging within the crypto community. They greet each other with “GM” (Good Morning) on platforms like Twitter and Discord, calling each other “Fren” (friend), forming a distinctive social circle.

Typical Degen Behavior Patterns

In practice, Degens are active in some of the most speculative corners. Meme coin trading is one of their main battlegrounds. They quickly buy into new meme coins based on viral social media trends and community hype, hoping they become the next viral token.

Participating in liquidity mining of emerging DeFi protocols is another common activity. They deposit funds into new, untested decentralized finance protocols to earn attractive annual yields, despite the risks of potential “rug pulls.”

Additionally, investing in unknown NFT series is typical. They buy early based on artistic style, community vibe, or founder stories, hoping the value will increase dozens or even hundreds of times.

Market Observation: Performance of Tokens Degen Focuses On

The tokens that Degens chase often cause significant market volatility. Below is a recent overview of the performance of some token types they frequently monitor on Gate (data as of January 15, 2026). Please note, the following data reflects market conditions at specific points in time and does not constitute investment advice.

The price movements of these tokens exemplify the high volatility of the crypto market. For Degens, such fluctuations are both a source of risk and opportunity.

Degen Language and Community Culture

Deep within Degen communities, you’ll hear a unique “lingo.” “Ape in” vividly describes jumping into an investment without thorough research. “Rekt” figuratively expresses being “destroyed” by investment losses. “GM,” as a morning greeting, has become a symbol of positivity in the crypto community. “WAGMI” (We’re All Gonna Make It) embodies community consensus, believing that “we will succeed.”

These slang terms are not only communication tools but also markers of identity, connecting Degens worldwide into a loose tribe with a shared language and culture.

Double-Edged Sword: Driving Innovation and Accompanying Risks

The Degen phenomenon is a double-edged sword in crypto. From a positive perspective, they are early adopters and innovators. Many Web3 and DeFi projects owe their initial liquidity, community buzz, and stress testing to Degens, enabling their survival and growth.

Their funds and attention serve as a “touchstone” for early projects. However, their high-risk appetite also entails significant personal financial risks. The market is rife with rumors, pump-and-dump scams, and failed projects, leading many Degens to suffer severe losses. Moreover, the speculative hype driven by Degen culture can sometimes overshadow projects focused on long-term value building, causing short-term market overexcitement.

When a Meme coin surges 500% in 24 hours or a new “play-to-earn” game attracts hundreds of thousands of users, there are almost always active Degens behind the scenes. They use real money to vote, testing the limits of the crypto world.

On the Gate platform, whether trading highly volatile Meme coins or participating in liquidity mining of emerging DeFi protocols, this diverse crypto ecosystem provides tools for different explorers. The market always rewards cautious foresight and bold risk-taking. Understanding Degen is understanding the rawest, most active pulse driving the crypto world.